Metcalfe’s Law

Some notes

• Number of unique possible connections in a network of $n$ nodes is $n(n-1)/2$ which is also caled the triangular number.

notes & stuff & things

• Links number of connections with “usefulness”
• Limitations
  • Assumes all connections are equally useful
  • Unbounded growth

Conclusions

• It’s interesting to think about which networks benefit from more nodes and follow Metcalfe’s law and which don’t. Seems like the internet, social media networks, bitcoin, and biodiversity are all networks that benefit from more nodes. But luxury products and classified information seem to be examples of where a larger network has a negative impact on the value.
• I like the idea of thinking about one additional node having not a linear, but a square impact on the value of the network.
  • I think decisionmaking could follow this. Adding another piece of information to a decision sometimes does not have a linear affect on the decision but instead can connect to the current pieces of information and have a larger impact.